Dallas Fed Services Sentiment Improves

The general business activity index for the service sector published by the Federal Reserve Bank of Dallas inched higher by 2.2 points from the previous month to -7.7 in May of 2026. Revenue inched higher (5 vs 4.3 in April) to record the fifth month of growth. Still, business conditions were deteriorated by a persistent surge in input prices (29.7 vs 31.2) as the war in the Middle East lifted energy expenditure for the sector nationwide. In turn, employment fell at a faster pace (-3.2 vs -1).

The general business activity index published by the Federal Reserve Bank of Dallas edged up to -9.9 in April 2026 from a near one-year low of -13.3 in March, though overall perceptions of business conditions remain weak. The revenues index increased 3 points to 4.3. Meanwhile, selling and input price pressures increased, rising to 8.3 and 31.2 respectively. Labor market measures remain unchanged, while wage and benefits index declined 5 points to 7.7. Looking ahead, general business activity sentiment improved. The company outlook index rose 5 points to -5 and the uncertainty index edged down 2 points to 24.8.

The general business activity index published by the Federal Reserve Bank of Dallas plummeted by 10.1 points from the previous month to -13.3 in March of 2026, reflecting the largest magnitude of pessimism since April of the previous year. Revenues grew at a softer pace (1.3 vs 4.1 in February). The drop in the index coincided with a sharp increase in input prices (24.4 vs 22.4) due to the surge in global energy prices after the outbreak of war in the Middle East, while the drop in client's acquisition power pressured selling price growth (4.9 vs 8.3). Looking ahead, the company outlook index dropped by 7.5 points to -9.9.